Private equity cost-cutter Maplin feels pain of the jobs knife

In the cut-throat world of private
equity there is always a danger that
the cost-cutter may eventually
become the casualty.

This, it appears, is the case at
High Street retailer Maplin
Electronics, which has laid off three
directors including one self-proclaimed
expert in ‘cost
management’.

Logistics director Steve Milner,
human resources director Steve
Lynas and property and
merchandise director Lawrence
Saunders have all been made
redundant. Milner states on his
LinkedIn profile that he reduced
annual warehouse ‘salary costs’ by
18 per cent, saving £500,000 a year.

Montagu private equity paid
£244million to take control of
Maplin in 2004 and owns 67 per cent
of the firm. latest accounts at
Companies House indicate losses in
the year to January increased by
25 per cent to £32.7million.

However, in a typically complex
arrangement between private equity
firms and the companies they own,
the accounts said that figure
included about £50million a year
set aside to be paid to Montagu,
which may not necessarily have to
be paid back.